SIA Engineering margins at the mercy of USD currency

SIAEC revenues are mostly in USD and any further weakness in the foreign currency will erode its already teetering profit margins.

What's the full breakdown of SIAEC revenues for the first quarter, and which segments contributed the most?

Here's more from OCBC:

4QFY12 and FY12 operating margins fell 1ppt and 1.2ppt respectively from a year earlier to 10.3% and 11.1%. Management partially attributed the higher expenses to increased subcontract costs, arising from higher revenue from its higher fleet management segment. Going forward, with most of its revenue denominated in USD, SIAEC’s profit margins will likely face further downward pressure if the USD weakens.

Fleet management segment was revenue growth driver. SIAEC’s Airframe Maintenance and Line Maintenance segments recorded little revenue growth in FY12. However, revenue from its Fleet Management segment jumped 33% to S$218m. Furthermore, SIAEC now services a fleet of 160 aircraft for 13 customers in this segment, as compared to 140 aircraft and 11 customers at end-FY11. Other notables are 1) SIAEC’s share of profits of JV and associated companies in FY12 grew 9% to S$157m, contributing to 52% of its pre-tax profit, and 2) management proposed a final dividend of S$0.15/share, which comes after an interim dividend of S$0.06/share.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia